- It will shortly be dawning on foreign corporations that the counterpart to the massive increase in US budget deficits will be a broadly matching increase in the trade deficit - unless, of course, there is a substantial change in US consumer savings habits.
- In a modern financial economy, the first evidence of the adjustment to lower personal cash balances is seen in the increased prices of financial assets, with the exception of fixed interest bonds.
- Rising yields for the benchmark 10-year UST is an early sign that the Fed is losing control over interest rates at the short end of the yield curve.
For further details see:
Inflation Roadmap